Computer networking is now a widely accepted means of delivering information. Some of the information delivered through computer networking includes simple data. For example, textual information is commonly delivered to users over wide-area networks. One example of a wide-area network is the Internet. Most users are familiar with the delivery of information that is formatted using a page description language. A web page is a good example of how textual information is formatted using a page description language called hyper-text markup language (HTML).
Now that many computer users are able to access computer networks using high-speed connections, the type of information delivered by computer network is beginning to expand in scope. High-speed access to computer networks is just one of the factors that have influenced the types of information that can now be delivered over a computer network. New compression mechanisms allow efficient delivery of audio and video content over computer networks. For example, audio is now encoded in formats such as “MP3” and video is encoded in formats such as “MPEG-II and MPEG-III”, just to name a few.
Information is a very valuable commodity. In many cases, the right to disseminate information belongs to the individual who created the information or a licensee thereof. The use of computer networks to distribute information has many people worried about the enforcement of dissemination rights. For example, many types of information are only intended to be distributed in specific geographic regions. In other cases, the location of a recipient of information can drive taxation and censorship requirements.
A common problem associated with the delivery of information is that of the simple right to distribute information of a particular type in a particular region. For example, one distributor of a particular movie (stored on a computer as an MPEG file, for example) may have only acquired the right to distribute the movie in California. Until now, when an on-line sale occurs, the distributor could only rely on the honesty of a consumer when determining the location of that consumer. Typically, this has been done by querying the consumer, e.g. through an on-line form. The consumer generally fills in a form that indicates the consumer's state or country of residence. Prior method for determining the location of a user are simply too easy to defeat. The distributor in the foregoing example could easily find itself running afoul of its licensing agreements made with the copyright owners of movies it sells on-line.
The problem is even more serious when a distributor needs to base its compliance with local, state and federal regulations and taxation codes. For example, some forms of entertainment content may be entirely banned by a particular sovereign. Consider, for example, adult entertainment or news that is political in nature. This is not so much of a problem in the United States and Europe, but many foreign states recognize political or religious restrictions that result in various forms of censorship. Here in the United States, many states require a distributor to charge sales tax when delivery is made to a consumer within the state. Likewise, consumers not within the state are generally exempt from such sales taxes.